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Amazon Web Services (AWS)

October 27, 2015

What’s the Value of Amazon Web Services?

Amazon Web Services
Amazon Web Services

Businesses are being challenged to meet new customer expectations influenced by consumer centric applications powered by cloud services. It is important to understand the value of cloud services for enterprises while embarking on the digital transformation journey. This paper measures the benefits that Amazon Web Services (AWS) provides to organizations which can be used to guide cloud adoption decisions.

Amazon Web Services Impacts on Operations & IT

IDC interviewed ten organizations from a cross section of industries using Amazon Web Services (AWS) to measure how AWS impacts their business operations and IT environments. These organizations are capturing substantial business value by making their operations more efficient and cost-effective, and by better serving their customers with accelerated solution delivery. On average, IDC calculates that these Amazon customers will capture five-year business benefits worth over $1.5 million per application they are running in the Amazon Web Services environment. They will achieve this value because Amazon Web Services:

  • Supports expanding application environments at a much lower cost than an on-premise or hosted environment
  • Requires less time to manage, administer and update
  • Provides agility, scalability, and improved performance to better address business opportunities and enhance user productivity
  • Reduces risk and minimizes the frequency of application downtime

Headline Figures from the Survey

  • 560% Five-year ROI
  • $1.54M Average five-year discounted business benefits per application
  • 64.3% Lower TCO 68.1% More efficient IT staff operations
  • $76,800 Additional revenue per year per application
  • 118.4% More applications delivered
  • 81.7% Less downtime

Interviews with AWS customers demonstrated that they are not only leveraging Amazon cloud services to build and support applications more efficiently and cost effectively, but that running these applications in the AWS environment is enabling them to better serve their customers and drive their business transformation initiatives.

Value Highlights of Amazon Web Services

Organizations that adopt cloud are able to be more competitive, increase customer satisfaction, innovate faster, and achieve greater productivity with resources that focus on core business enablement.

Cost savings benefits of cloud computing have been well documented and understood by businesses with a number of proven use cases documenting results. Over the past few years, enterprises implementing business agility initiatives significantly differentiate themselves from competitors. It is important for readers to understand the potential value beyond dollars and cents from the technology. Beyond cost savings, the following benefits observed in the survey are important while justifying cloud computing in an organization:

1. Better out of the box security

2. Upgrades to solutions are more frequent

3. Opportunity to open up new revenue streams

4. Lower downtime resulting in better user satisfaction

5. Improved decision making ability from faster analytics

6. Improved performance

7. Reduced costs

8. Faster innovation and time to market

9. Lower risk of getting locked into one vendor

Furthermore, mobile device growth and the rapid increase of sensors are changing current business environments and providing opportunities to fully digitizing enterprises. To handle huge volumes of information, analytics is important to automate decision making. In this dynamic environment, businesses are challenged to adapt at a very rapid pace. Business agility enabled by cloud computing technology offers the unique ability to address this disruptive shift.


Download IDC Report The Business Value of Amazon Web Services